DIRECTCASH 2Q/08

DirectCash Income Fund released its financial results for the three and
six months ended June 30th. The results show, compared with 2Q/07,
DirectCash 2Q/08 saw an 8.8% increase in revenue, a 4.8% increase in
gross profits, an 8.9% increase in EBITDA, a 5.8% increase in
distributable cash flow, a 27 % increase is Debit transactions
processed, a 22% increase in Prepaid Cash Card activations and a 29%
increase in Prepaid Cash Card transactions (35% increase for 1H/08).
Overall, DirectCash generated transaction growth of 27% and 39% and
generated growth in cash card activation of 22% and 20% for the three
and six months, respectively. For complete details on DirectCash’s latest results visit CardData (www.carddata.com).

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First Data 2Q/08 Revenues Climb 10%

First Data posted a 10% gain in second quarter revenues to $2.2 billion. Due to its KKR merger, the loss from continuing operations was $161 million for 2Q/08. Merchant Services produced second quarter revenues of $1 billion, a growth rate of 8% or flat excluding reimbursable debit network fees. Financial Services generated revenue of $704 million for the quarter, down 1% or down 4% excluding reimbursables and purchase accounting adjustments. FDC’s International posted revenue of $473 million, up 20% due to acquisitions in prior periods and a 23%
transaction growth rate. During the quarter, Merchant Services signed more than 175,000 domestic merchant locations as domestic merchant transactions grew 11%. Financial Services signed an agreement with Nordstrom. Also, International signed an agreement to acquire a significant ownership interest in EUFISERV. Additionally, FDC announced during the second quarter the winding down of its JV with Chase in regard to Chase Paymentech. For complete details on First Data’s second quarter performance visit CardData ([www.carddata.com](http://www.carddata.com)).

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CPI Names a New Blank Card Sales Manager

CO-based card manufacturer CPI Card Group has promoted Alvaro
Moreno to Blank Card Sales Manager. Alvaro will be assisting customers
with blank card manufacturing orders
and ongoing service. With his customer service background at CPI, he is
familiar with the card ordering process, customers’ needs, and how to
exceed customer expectations. Alvaro has over 20 years of management
experience in a manufacturing environment, as well as sales service
experience prior to joining CPI in 2005. CPI
offers a single source for plastic cards from foil cards and holograms,
to translucent and smart cards.

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Authorized Users Piggybacking Emboldened

BoostMyScore.NET has asserted “FICO ’08” is part of the ‘credit score elimination propaganda scare’, contradicting its announcement one-year ago to end credit score ‘piggybacking’. FICO’s ‘piggybacking’ is a violation, holds BoostMyScore.NET, of the “Equal Credit Opportunity Act” and requirements of lenders to weigh potential borrowers’ credit risk. To ensure continued reliability of FICO scores, in order for lenders to consider them in their calculation, Fair Isaac sent out press releases stating that the “FICO ’08” model would remove authorized user accounts from consideration, which is not legal and which the general public was led to believe was true. BoostMyScore.NET credit score advisory company helps consumers boost FICO credit scores.

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JUNE METRICS

The “Monthly Payment Rate” and the “Yield” for credit card-backed securities in the U.K. edged upward in June. However, overall credit card-backed securities performance deteriorated during the second quarter. According to FitchRatings the “Monthly Payment Rate” increased to 17.00% in June, compared to 16.80% in the prior month. Fitch also reports that the “Yield” rose to 20.2% in June, compared to 19.5% in May. The Fitch “Charge-Off Index” increased to 6.9% in June, its highest level in nine months. Having remained stable over the last three monthly periods, the Fitch “Delinquency Index” increased again in June, rising 10 basis points to 3.7%, its highest level since June 2007. Fitch remains cautious as to the outlook for U.K. credit card transactions, with the worsening economic environment expected to affect UK consumers in the longer term. The anticipated impact of the current slowing UK economy, together with factors such as increased costs of living and the reduced availability of credit, continue to provide some concerns regarding UK consumers’ future ability to meet repayments on their credit card debts.

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Chase Workers Compensation Card Unveiled

JPMorgan has introduced “The Chase Workers Compensation Card” prepaid
debit card to deliver workers compensation benefits to injured
or disabled workers. The card offers insurance companies an
alternative method for paying injured workers and improves the benefits
payment process by reducing the costs and time associated with
paper-based check distribution. The “Compensation Card”
enables injured workers to access their funds at ATMs, receive cash back
at retail locations, pay bills
online, and make purchases at the millions of locations that accept
Visa debit cards, such as pharmacies and medical facilities.
The card also helps insurance companies
improve the management of funds distribution as a result of increased
reporting capabilities. Program administrators use an online managing
and reporting tool to quickly enroll cardholders, ensure that cards have
been shipped to new cardholders in a timely manner, electronically
deposit funds into card accounts, track payments to ensure that
cardholders are being paid on time, and produce nearly twenty types of
reports. New cardholders also can be enrolled via batch file processing.

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Visa and Marriott Team for the MegaBonus

Marriott Rewards’ “MegaBonus” reward point program has returned and
partnered with Visa to offer members up to 25,000 bonus points.
For every third Visa-paid stay, members will earn 5,000 “MegaBonus”
Marriott Rewards points, up to a maximum 25,000 points at participating
Marriott hotels between September 15, 2008 and January 15, 2009.
MegaBonus points can be earned at 2,900 Marriott International hotels
around the world.

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PaySpot to Market Futura Prepaid MasterCards

Prepaid card provider PaySpot has signed a multi-year
agreement to distribute Futura Prepaid MasterCard products to
PaySpot’s ISO network. As part of the agreement, Futura has chosen PaySpot as its
exclusive U.S. distribution partner for the ISO channel. Futura’s debit card program is a unique offering for PaySpot ISOs
because the Futura Distributor Advantage Plan makes this a much more
ISO-friendly prepaid debit product than any other known to be on the
market. The Futura debit
product is available exclusively through PaySpot.

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OPEN SOLUTIONS EXPANSION

Open Solutions Inc, international integrated technologies for financial
services providers, has announced its international reseller partnership
agreement with Magic Software IT Services and FSI Solutions Provider.
MST will provide the Open Solutions’ products and services to its
banking clients within the Asian financial services marketplace, already
met with positive reception by some clients. This development is part of
Open Solutions’ continued expansion of its international strategic
reseller network in various countries from Canada to China. Open
Solutions strategic information management product platform integrates
core data processing applications built on a single centralized Oracle
relational database, with Internet banking, cash management,
CRM/business intelligence, financial accounting and management tools.

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Consumer Trust and Wallet Share is Linked

New research shows that consumers’ trust in their primary banks drives wallet capture. According to Mercator’s financial services strategy consulting & research, trust in an institution is a major driver of success for cross-selling and customer retention. These factors include the transparency of banking costs such as deposit service charges, over limit fees, clarity of operational processes and employees’ aptitude to meet customers’ needs. Mercator’s also shows “trust relationship” scores range from 64% to 84% while the average national bank scores a 63% on transparency, which financial services providers can provide more of by disclosing fees for each product and service. According to the Mercator’s analysis, each incremental step up in consumer trust directly translates into share of wallet gains across all consumer segments.

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MATICA AMERICAS

Matica has announced the establishment of its joint venture with CanCard, Data
Technology Systems and IdentiSys distributors called “Matica Americas.”
The distributors will provide Matica Americas-which is designed to offer
its complete range of solutions with equipment, software, supplies,
technical services and customer support- with Matica card
personalization and mailing systems. Italy-based Matica provides card
personalization solutions in over 100 countries while Canada-based
CanCard Digicard products provide sufficient support to the organization
for its American expansion. Meanwhile, Data Technology Systems
specializes in the sales/servicing of card personalization and metal
plate embossing equipment while IdentiSys Inc identification/security
service provider has a long-standing, nine-year relationship with Matica
providing its metal plate/plastic card personalization systems.

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Unbanked = Hispanics and African-Americans

A new survey reveals that U.S. Hispanics and African-Americans are consistently classified as the majority of the ‘unbanked’ and ‘underbanked’ with very low account ownership. According to Synovate “2008 U.S. Diversity Markets Report”, the percentage of U.S. Hispanics with any type of bank account is up 7% since 2004 to 77% while African-Americans have increased account ownership by 8% over the same period to 90%. Additional findings show 33% of African-Americans, 18% of Hispanics and 60% of the ‘general market’ are invested in stocks or bonds and 25% of African-Americans, 24% of Hispanics and 36% of the ‘general market’ are owners of CDs, credit cards and mortgages. Finally, 54% of U.S. Hispanics send money to outside the U.S. with 28% conducting remittance transactions once a month or more for an average amount of $230.

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